Charge off after months of payments being marked on time

[sjt]

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@vegas757 wrote:

Is there anything worth doing? Or just let it go?... I just think some of this credit reporting is screwy. On another credit card account (Equifax) I'm mark "pays as agreed" from Jan-June. Then July it says 90 day late, Aug 90, Sept pays as agreed. How can I be current one month but 90 days late the next? I don't get it. During that time I never checked my reports nor did I understand alot of things. I'm learning so much now and wish I would of paid attention to things back then.

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I think its worth pursuing. I would call Bank of America and go over the reporting issues. It cant hurt. You paid off the account. You became current in 2010 and paid on time. At the very least they can explain their reporting procedures to you.

BTW was the DMP program through Bank of America directly or an outside company?

[coterotie]

Wow, exact same thing happened to us:

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/MBNA-BOA-Card/td-p/2355797

I'm wondering how to proceed as well.  I got really blindsided by this.

[guiness56]

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@sjt wrote:

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@vegas757 wrote:

180 days of no payment? I made my agreed upon minimum monthly payments (after doing the debt manament thing) but it was not enough to cover the past non-payments to bring the account current. I also had 7 other accounts with same situation. 3 of them also were charge offs but the other 4, even with the same 30-150 day lates over 3.5 year period, were never charged off, only closed. I called Chase agan today to verify. Accounts were not charge offs. Nor do credit reports indicate this.

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It dont think it should have been entered as a "Charge Off" since you entered into their DMP Program.

We established the reason for the late entries from August 2007 to January 2010. After that you got caught up and made timely payments until the debt was paid. So from February 2010 until February 2012, it was reporting "pays as agreed" which is the correct entry and should not be changed. Usally if an account was "charged off" but you enter a DMP Program the bank will positivily reage the account to "closed account" status.

Also, the last late payment you had with BoA was in 2010 (over three years) so the impact of the negative reporting deminishes and the timely payments help. Also having the account paid helps with the utilization.

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I agree it shouldn't have.  But what most CCC fail to tell you is that if you are on a payment plan and minimum payments are not being made, they will mark you as late.  Once it reaches the mandatory CO status, they have to do it.

It happens all the time and consumers never know until they check their credit reports.

[coterotie]

In our case we were making twice sometimes 4 times the minimum paymets required by the payment plan.  Every six months we had to "renew" the plan.  After we got down to the last $2,500 they called every month asking if we wanted to settle.  I always told them no, that I wanted to PIF.  Turns out if I had settled it would have been better for the credit report.

[guiness56]

When did you actually bring the account current?  Was it before the reported CO?

And no, a settlement is scored on par with a CO.

[coterotie]

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@guiness56 wrote:

When did you actually bring the account current?  Was it before the reported CO?

And no, a settlement is scored on par with a CO.

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No, they charged it off 6 years ago, during the check fiasco.  But since we were in their payment plan they were marking it paid as agreed for 4+ years.  Then 12 -14 months ago they marked it as a charge off.  The reason I said the settlement would have been better is that instead of 15 months of each month reporting as a charge off, it would have been paid as agreed, then settled, 14 months ago.  Not reporting as a current charge off each month.  And it went straight from paid as agreed to chargeoff without any lates in between.

[vegas757]

Mine was through a reputable debt management program- at least through reviews, etc...i had other accounts that had that same payment history not become charge offs. The other 3 charge offs have "CO" marked every month for that time frame. BOA has the lates, then good, then "CO". How can I be marked current then "CO"? Or on another account be current for months then marked 60 days late the next?

[sjt]

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@vegas757 wrote:
Mine was through a reputable debt management program- at least through reviews, etc...i had other accounts that had that same payment history not become charge offs. The other 3 charge offs have "CO" marked every month for that time frame. BOA has the lates, then good, then "CO". How can I be marked current then "CO"? Or on another account be current for months then marked 60 days late the next?

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Contact Bank of America as I think there is some error on their part.